Table 7.2.1

-Table 7.2.1 shows a country's demand and supply schedules. Based on Table 7.2.1, suppose the world price is $4 a unit. The country
A)imports 20 units.
B)exports 20 units.
C)imports 10 units.
D)exports 10 units.
E)imports 30 units.

Question

Table 7.2.1
 
-Table 7.2.1 shows a country's demand and supply schedules. Based on Table 7.2.1, suppose the world price is $4 a unit. The country
A)imports 20 units. 
B)exports 20 units. 
C)imports 10 units. 
D)exports 10 units. 
E)imports 30 units.

Quizplus · Accepted Answer

If the world price is $4 a unit and the domestic price is higher, the country will import the difference between domestic demand and supply at that price. If the domestic demand is 50 units and supply is 30 units at $4, the country imports 20 units.

Table 7.2.1 -Table 7.2.1 Shows a Country's Demand and Supply Schedules. Based